Stocks 101: What You're Actually Buying

A share of stock is a small piece of ownership in a company. When you buy one share of Apple, you own a tiny fraction of Apple — its profits, its assets, and (in theory) a vote at shareholder meetings.

Stock prices move based on supply and demand: more buyers than sellers pushes the price up, more sellers than buyers pushes it down. Behind that supply/demand shift is usually news — earnings reports, product launches, economic data, or just shifting sentiment about the future.

Two numbers matter most when you're starting out: the current price (what it costs right now) and market cap (price × total shares outstanding, which tells you the company's total value). A $50 stock isn't automatically 'cheaper' than a $500 stock — it depends entirely on how many shares exist.

Order types you'll actually use as a beginner:

• Market order: buy or sell immediately at the best available price. Simple, but you don't control the exact price you get.

• Limit order: buy or sell only at a price you specify (or better). You control the price, but the order might not fill if the stock never reaches it.

The single biggest beginner mistake is treating a stock's price chart like a video game score. A falling price doesn't mean 'buy the dip' automatically, and a rising price doesn't mean 'take profit now' automatically — both require understanding *why* the price is moving before you act.